We’re Number Two: China Overtakes the US for the Title of Top Luxury Consumers

Car companies, watch makers and fashion brands and other producers of luxury good have seen the writing on the wall for some time, and now it’s official: Chinese shoppers account for more luxury sales than their US counterparts.

Chinese consumers have overtaken U.S. shoppers this year to become the worldâ€™s biggest buyers of luxury goods, accounting for 25 percent of global sales through purchases at home and overseas, consultancy firm Bain & Co. said. {Bloomberg}

Compared to US economic growth that’s taken place at a snail’s pace, China has seen rocket-like growth for the past few years. While that growth is slowing, it still outpaces a stagnant Eurozone economy with few bright spots. For luxury goods makers, that’s actually not such a bad thing. The Bain study found that 60% of luxury spending happens outside of mainland China, as shoppers look to skirt luxury goods import duties that make items more expensive at home. A weak Euro means Chinese shoppers get more bang for their yuan outside the country.